Question about a seller providing rent rolls

[Kari Morales]

I am looking at putting an offer in for a fourplex, but I am having trouble getting solid information from the seller about the past rental history.

My agent, at my request, has reached out asking the sellers agent for the last 5 years of rental history. The sellers response was, “it is very popular and has a less than 5 percent vacancy rate over the last 5 years that he has owned the property.”

My question is, is it standard procedure for a seller to provide past history, rent rolls, or financials before an offer is put in, or does this happen after an accepted offer?

Also, for those with experience buying multifamily properties, would you put an offer in based solely on the sellers word, 5 percent vacancy rate, without seeing the rent rolls or financials first? I appreciate your insight as this is my first multifamily property and I am trying to learn from others that have more experience than I do. Thanks.

[Jim Kennedy]

The seller has one job. Sell it. Its nice that there's an allegedly high occupancy rate, but how are you supposed to see if the cash flow services your debt and puts a little something in your pocket? I've owned 14 buildings in my investing career, and we asked and got a rent roll every time.  The old saying "Trust but verify" is especially valid in this fact pattern. Just my two cents.

Jim Kennedy